Bridging the experience gap: cognitive biases and heuristics in the internationalization of small firms
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https://creativecommons.org/licenses/by/4.0/
Pysyvä osoite
Kuvaus
© Anisur R. Faroque, Lucrezia Casulli, Olli Kuivalainen and Sanna Sundqvist. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at Link to the terms of the CC BY 4.0 licence.
Purpose
Research on early internationalization in smaller firms has primarily focused on initial market entry, often neglecting responses to adverse post-entry events. This paper addresses the gap between entrepreneurial internationalization and small business survival by examining both initial and post-entry stages through decision-maker cognition.
Design/methodology/approach
This conceptual paper develops a cognition-based decision framework that explains how cognitive biases influence pre- and initial entry decisions, and evolve in response to post-entry negative events. It introduces the “experience gap paradox”- a misalignment between personal experience and required international market experience – as a key driver of biased judgment. The framework links non-contextualized pre-entry experience with post-entry decision-making, offering testable propositions on the dynamic interplay between biases, heuristics, and internationalization decisions.
Findings
This model supports the argument that heuristic decision-making is contingent upon context-specific prior experience, which leaders of small firms typically lack pre-entry, causing them to develop and rely on decision biases.
Originality/value
This article contributes by exploring how cognitive heuristics and biases evolve in decision-making across the pre-entry and post-entry stages of internationalization, with a focus on smaller firms-particularly International New Ventures (INVs). It provides a comprehensive understanding of the “experience gap paradox” and its influence on entrepreneurial internationalization, offering insights relevant to small firms' adaptive decision-making and survival.
Emojulkaisu
ISBN
ISSN
1758-6534
1355-2554
1355-2554
Aihealue
Kausijulkaisu
International journal of entrepreneurial behaviour and research|32
OKM-julkaisutyyppi
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä (vertaisarvioitu)